FutureLearn uses cookies to enhance your experience of the website. All but strictly necessary cookies are currently disabled for this browser. Turn on JavaScript to exercise your cookie preferences for all non-essential cookies. You can read FutureLearn's Cookie policy here.

Learn more about this course.

Extending the CLV Formula, Part 1

Watch Raj Venkatesan explain the impact of time horizon and initial margin on CLV calculations.

Now that you are familiar with the base CLV model, learn how to adjust the formula based on two factors: time horizon and initial margin. This will help you account for when customers pay and when the percentage of CLV is accrued over time.

Want to keep learning?

This content is taken from Darden School of Business, University of Virginia online course

Marketing Analytics

See other articles from this course

This article is from the free online

Marketing Analytics

Created by

Join Now

Reach your personal and professional goals

Unlock access to hundreds of expert online courses and degrees from top universities and educators to gain accredited qualifications and professional CV-building certificates.

Join over 18 million learners to launch, switch or build upon your career, all at your own pace, across a wide range of topic areas.

Start Learning now